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Property tax in 2023 in Poland - rates, deadlines, subject of taxation

08.11.2022
Podatek od nieruchomości w 2023 roku- stawki, terminy, przedmiot opodatkowania

Every year property taxpayers are obliged to file a return for property tax. The above forms are submitted to the mayor/mayor/commune head (wójt) with jurisdiction over the location of the objects subject to taxation (i.e., land, buildings and structures). Property tax payments must be made until the tax obligation expires. Legal entities pay tax for each month in installments, by the 15th of each month. However, the amount of tax under 100 PLN is paid in a single payment on the due date of the first installment.

Who has to pay property tax in Poland?

Objects subject to property tax are:

  • land,
  • buildings or parts thereof,
  • Structures or parts thereof related to the conduct of business.

Property tax payers are:

  • owner,
  • perpetual user,
  • autonomous possessor,
  • dependent owner-as the case may be.

The basis for property taxation is:

  • land area in m2 or ha,
  • usable area of the building in m2,
  • amount that forms the basis for calculating depreciation.

Property tax forms include:

  • DN-1 to indicate objects subject to taxation or exempted for legal entities together with ZDN-1 and ZDN-2 attachments,
  • IIN-1 to indicate objects subject to taxation or exempt for individuals, together with attachments ZIN-1, ZIN-2, ZIN-3.

Property tax-when do we pay it in Poland?

Tax obligation arises with the first day of the next month following the acquisition of the property or the commencement of its use. However, for newly constructed buildings or structures, it arises with the first day of January of the year following the year in which construction was completed. It can also be the moment when the use of a structure, a building began before the completion of the final finish.

Example 1:

Company X acquired the land on August 15, 2022 (the date of signing the deed)- the property tax obligation arises on September 1, 2022.

In addition, it is the Company’s responsibility to file a property tax return within 14 days of acquiring the land.

Example 2

The construction of Company X’s villa building was completed on March 20, 2021 – tax obligation arose on January 1, 2022.

As the end of the year approaches, the Ministry of Finance has made public what the specific rates of local taxes and fees will be in 2023. The rates set by the government change annually in accordance with the inflation rate, on the basis of which they are calculated.

In a notice dated August 1, 2022 [M.P. 2022, item 731], the Ministry of Finance published the indexed rates. Each municipal council has the right to determine independently by resolution what value of the tribute will apply – up to an upper limit.

2022 was a difficult year in terms of the highest inflation reading in years, and as a result, in 2023 you need to be ready for sizable tax increases. This includes property tax compared to last year.

For example, we will pay an average of PLN 0.13 more for land connected with business activities, regardless of the way it is classified in the land and buildings register. And for buildings connected with the conduct of business activities and for residential buildings or their parts occupied for business activities, the average is PLN 3.04 more than last year.

What is the amount of property tax in Poland?

Applicable land tax rates for 2023:

  • connected with the conduct of business activities, regardless of the way they are classified in the land and buildings register – PLN 1.16 per square meter of area,
  • under standing surface waters or flowing surface waters of lakes and artificial reservoirs – PLN 5.79 per hectare of area,
  • statutory public benefit activity by public benefit organizations – PLN 0.61 per 1 m2 of surface,
  • undeveloped, included in the revitalization area and located in areas for which the local zoning plan provides for the use of residential, commercial or mixed-use development including only these types of development. If a period of 4 years has passed since the date of entry into force of this plan with respect to these lands, and during this period construction has not been completed in accordance with the provisions of the Construction Act – PLN 3.81 per square meter of area.

Applicable tax rates on buildings  or parts thereof for 2023:

  • residential – PLN 1.00 per square meter of usable area,
  • connected with the conduct of business activity and from residential buildings or their parts occupied for business activity – PLN 28.78 per 1 m2 of usable area,
  • occupied for business activities in the field of marketing of certified seed material – PLN 13.47 per square meter of usable area,
  • connected with the provision of health care services within the meaning of the regulations on medical activity, occupied by entities providing such services – PLN 5.87 per square meter of usable area,
  • other, including those occupied for the conduct of paid statutory public benefit activity by public benefit organizations – PLN 9.71 per square meter of usable area.

Tax returns often cause taxpayers many problems. The same is true for property tax- manual filing, the appropriate headings and amounts make a high chance of errors. An easier way to pay property tax has become the Przyjazne Deklaracje (Friendly Tax Returns)portal, a platform that provides an easy way to fill out the appropriate forms, both for individuals and legal entities, algorithms select tax rates and calculate the tax. In addition, answers to the most common questions can be found there.

Author: Izabela Chudzik, Accountant at MDDP Outsourcing.

Sources:

Announcement of the Minister of Finance dated July 28, 2022 on upper limits of the amount rates of local taxes and fees for 2023

https://przyjazne-deklaracje.pl/podatek-od-nieruchomosci/